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Will Fed policy trigger a US recession?

Goldman Sachs Exchanges

CHAPTER

Understanding the SOM Rule and Its Implications for Economic Indicators

This chapter explores the creation and operation of the SOM rule, designed to signal the need for fiscal stimulus during economic downturns. It highlights the careful construction of this reliable indicator based on historical recession data, while also addressing its recent activation and the ensuing debates about its predictive accuracy amidst positive economic trends.

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